GRANITE CONSTRUCTION INC (GVA) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:GVA • US3873281071
120.74 USD
-0.83 (-0.68%)
At close: Jan 30, 2026
120.74 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
GVA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 55 industry peers in the Construction & Engineering industry. GVA has only an average score on both its financial health and profitability. An interesting combination arises when we look at growth and value: GVA is growing strongly while it also seems undervalued. With these ratings, GVA could be worth investigating further for value and growth investing!.
1. Profitability
1.1 Basic Checks
- GVA had positive earnings in the past year.
- GVA had a positive operating cash flow in the past year.
- Of the past 5 years GVA 4 years were profitable.
- Each year in the past 5 years GVA had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.40%, GVA is in line with its industry, outperforming 57.14% of the companies in the same industry.
- With a decent Return On Equity value of 15.79%, GVA is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- The Return On Invested Capital of GVA (6.20%) is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for GVA is significantly below the industry average of 15.97%.
- The last Return On Invested Capital (6.20%) for GVA is above the 3 year average (3.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 15.79% | ||
| ROIC | 6.2% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
1.3 Margins
- GVA's Profit Margin of 4.31% is fine compared to the rest of the industry. GVA outperforms 60.71% of its industry peers.
- GVA's Profit Margin has improved in the last couple of years.
- GVA has a Operating Margin of 6.08%. This is comparable to the rest of the industry: GVA outperforms 55.36% of its industry peers.
- GVA has a Gross Margin of 16.39%. This is comparable to the rest of the industry: GVA outperforms 50.00% of its industry peers.
- In the last couple of years the Gross Margin of GVA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.08% | ||
| PM (TTM) | 4.31% | ||
| GM | 16.39% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
2. Health
2.1 Basic Checks
- GVA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, GVA has less shares outstanding
- Compared to 5 years ago, GVA has less shares outstanding
- The debt/assets ratio for GVA is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.63 indicates that GVA is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of GVA (2.63) is comparable to the rest of the industry.
- GVA has a debt to FCF ratio of 3.86. This is a good value and a sign of high solvency as GVA would need 3.86 years to pay back of all of its debts.
- GVA's Debt to FCF ratio of 3.86 is fine compared to the rest of the industry. GVA outperforms 69.64% of its industry peers.
- GVA has a Debt/Equity ratio of 0.84. This is a neutral value indicating GVA is somewhat dependend on debt financing.
- The Debt to Equity ratio of GVA (0.84) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 2.63 |
ROIC/WACC0.62
WACC9.97%
2.3 Liquidity
- GVA has a Current Ratio of 1.21. This is a normal value and indicates that GVA is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of GVA (1.21) is comparable to the rest of the industry.
- A Quick Ratio of 1.12 indicates that GVA should not have too much problems paying its short term obligations.
- The Quick ratio of GVA (1.12) is worse than 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
- GVA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 61.71%, which is quite impressive.
- The Earnings Per Share has been growing by 32.75% on average over the past years. This is a very strong growth
- GVA shows a small growth in Revenue. In the last year, the Revenue has grown by 6.87%.
- GVA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.57% yearly.
EPS 1Y (TTM)61.71%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%31.71%
Revenue 1Y (TTM)6.87%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%12.39%
3.2 Future
- The Earnings Per Share is expected to grow by 22.48% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 9.62% on average over the next years. This is quite good.
EPS Next Y38.93%
EPS Next 2Y24.52%
EPS Next 3Y22.48%
EPS Next 5YN/A
Revenue Next Year10.92%
Revenue Next 2Y10.76%
Revenue Next 3Y9.62%
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 20.57, GVA is valued on the expensive side.
- Based on the Price/Earnings ratio, GVA is valued cheaper than 82.14% of the companies in the same industry.
- GVA is valuated rather cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 19.28 indicates a rather expensive valuation of GVA.
- Based on the Price/Forward Earnings ratio, GVA is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of GVA to the average of the S&P500 Index (25.57), we can say GVA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.57 | ||
| Fwd PE | 19.28 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GVA is valued cheaply inside the industry as 80.36% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of GVA indicates a rather cheap valuation: GVA is cheaper than 91.07% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.21 | ||
| EV/EBITDA | 13.94 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- GVA has a very decent profitability rating, which may justify a higher PE ratio.
- GVA's earnings are expected to grow with 22.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)0.63
EPS Next 2Y24.52%
EPS Next 3Y22.48%
5. Dividend
5.1 Amount
- GVA has a yearly dividend return of 0.43%, which is pretty low.
- GVA's Dividend Yield is rather good when compared to the industry average which is at 0.14. GVA pays more dividend than 89.29% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, GVA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
5.2 History
- The dividend of GVA decreases each year by -0.19%.
- GVA has paid a dividend for at least 10 years, which is a reliable track record.
- GVA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.19%
Div Incr Years0
Div Non Decr Years33
5.3 Sustainability
- GVA pays out 12.45% of its income as dividend. This is a sustainable payout ratio.
DP12.45%
EPS Next 2Y24.52%
EPS Next 3Y22.48%
GRANITE CONSTRUCTION INC / GVA FAQ
What is the fundamental rating for GVA stock?
ChartMill assigns a fundamental rating of 6 / 10 to GVA.
Can you provide the valuation status for GRANITE CONSTRUCTION INC?
ChartMill assigns a valuation rating of 6 / 10 to GRANITE CONSTRUCTION INC (GVA). This can be considered as Fairly Valued.
Can you provide the profitability details for GRANITE CONSTRUCTION INC?
GRANITE CONSTRUCTION INC (GVA) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for GVA stock?
The Price/Earnings (PE) ratio for GRANITE CONSTRUCTION INC (GVA) is 20.57 and the Price/Book (PB) ratio is 4.56.
Is the dividend of GRANITE CONSTRUCTION INC sustainable?
The dividend rating of GRANITE CONSTRUCTION INC (GVA) is 5 / 10 and the dividend payout ratio is 12.45%.